Comments on the 'Standardised Measurement Approach' for Operational Risk

Download or read book Comments on the 'Standardised Measurement Approach' for Operational Risk written by Benoit Genest and published by . This book was released on 2019 with total page 26 pages. Available in PDF, EPUB and Kindle. Book excerpt: We provides a response to the Basel Committee on Banking Supervision's consultative document based on the public data communicated by the Bank for International Settlements.Our comments represent an open response including different lines of thought. However, the proposals should not be considered as final solutions but as a strong willingness on the part of CH&Co to open the debate about the Standardised Measurement Approach and to challenge the topics that seem relevant to us. We aim at identifying potential limits and weaknesses, providing alternatives and possible area for improvements. The proposals presented in this document are complementary, as they provide different visions and area for improvements within the SMA methodology.Our comments relate to 3 areas:- SMA method inputs : specific analysis of the internal losses data- SMA method components : specific analysis of the LC- Capital calculation methodology : specific analysis of the SMA formulaOur comments are based on the market practices we have observed over several years concerning the measurement and management of operational risk. They also reflect constructive ongoing discussions with banking actors on this subject.